The High Court of Gujarat has provided temporary protection to a container shipping company in a legal case about how it shares tax credits between its different branches. The court has ordered that the authorities should not take any harsh actions against the company while the case is still ongoing.
Orient Overseas Container Line Limited filed a petition, represented by Dhaval Shah, contesting the order dated 28.01.2025 passed by the Union of India authorities, including the Central Goods and Services Tax (CGST) officers.
For the applicant, Senior Advocate Mihir Joshi and Dhaval Shah appeared; Deepak N. Khanchandani and Pradip D. Bhate represented the respondents.
The applicant, via its Mumbai-based Indian company, delivers container shipping and logistical services, including the likes of in-line haulage and terminal management. The applicant, having several branches throughout India, obtained multiple GST registrations and an Input Service Distributor (ISD) registration in Gujarat so as to properly distribute ITC to its branches as per GST requirements.
The issue arose because, although the applicant did not allege any tax evasion, the authorities invoked Section 74 of the Integrated Goods and Services Tax (IGST) Act, 2017, which typically pertains to tax evasion cases. The applicant argued that this claim stemmed from a misinterpretation of GST regulations and Circular 199/11/2023-GST, dated July 17, 2023. The dispute was solely about the correct method of allocating Input Tax Credit (ITC) among its registered branches.
The Court, Justices Bhargav D. Karia and Justice P.M. Raval, issued notice returnable on 24.07.2025 and directed that the respondents shall take no coercive action until the next hearing. The Court permitted service of notices through email.
| Case Title | Orient Overseas Container Line Limited & ORS. Vs Union of India & ORS. |
| Case No. | 5824 of 2025 |
| For Petitioner | MR Dhaval Shah |
| For Respondent | MR Pradip D Bhate (1523) for the Respondent(s) No. 1 Deepak N Khanchandani (7781) for the Respondent(s) No. 2,3 |
| Gujarat High Court | Read Order 1 Read Order 2 |
